Swan right to point out economic risks: PM

Prime Minister Julia Gillard is standing by her treasurer's attack on the "cranks and crazies" of the US Tea Party movement, saying it is "appropriate" for him to point out the risks to the global economy.

But the federal opposition says rather than peddling his "hatred" of successful people, Wayne Swan should stick to his job of being treasurer.

In a speech on the global outlook on Friday, Mr Swan accused the "cranks and crazies" of the US Tea Party movement of taking over the US Republican Party, and said they were preventing Congress resolving its budget problem, the so-called "fiscal cliff".

Asked after the speech whether his comments were inflammatory in a presidential election year, Mr Swan said it would be "pretty inflammatory" to see a country default.

"That would have very serious implications for the global economy," he told reporters in Sydney.

The treasurer also accused the Australian opposition of stooping to Tea Party politics.

"I know there are people who will go out there like (Opposition Leader) Tony Abbott and talk our economy down and behave in a Tea Party fashion."